List four types of financial statements that the company’s annual report typically include.

Problem set 2 | Business & Finance homework help

1. Balance sheet: The balance sheet is a financial statement that provides an overview of the company’s assets, liabilities and shareholders’ equity. Assets are items owned by the company and can include cash, accounts receivable, inventory and property, plant and equipment. Liabilities represent what the company owes to creditors like banks and suppliers while shareholders’ equity represents what remains after subtracting all liabilities from total assets.

2. Income statement: The income statement presents a summary of how well the business performed during a specified period (typically one year). It shows revenue earned minus expenses incurred resulting in net income or net loss for that period of time. This information is used to measure profitability over time as well as assessing whether costs are being controlled effectively or if sales could be increased with different pricing strategies for example.

3. Statement of changes in equity: The statement of changes in equity is also known as ‘statement of retained earnings’ which reconciles changes to capital or accumulated profits/retained earnings during a given period such as one year ending at the date stated in this report’s footnotes section.. Equity generally consists of ownership interests paid-in-capital plus retained earnings; hence it may be depicted by two columns on this report – one showing changes due to owner contributions (paid-in capital) while other column reports retained earnings movements within same reporting period end date.

4. Cash flow statement: A cash flow statement details all inflows & outflows related to cash into & out from activities related such as operating activities, investments & financing functions thus providing insights into liquidity position & operational efficiency level plus relevant sources & uses associated with money transactions… This document may help internal stakeholders understand why certain short term liquidity problems have arose while external investors can view long term trends associated with corporate finances including any dividend payments made by way of review analysis.